Refer to the Figure Below

question 87

Multiple Choice

Refer to the figure below.Based on the diagram, if potential output equals 5,000 and the real interest rate is 3%, then there is ______ gap and the Fed must ______ the real interest rate so that output will equal potential output.

• A)a recessionary; raise
• B)a recessionary; reduce
• C)no output; not change
• D)an expansionary; raise

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Definitions:

Hippocampus

A complex brain structure embedded deep into the temporal lobe, playing a major role in learning and memory processes.

Amygdala

A part of the brain involved in emotion regulation, especially fear and aggression responses.

Conscious Recall

The act of intentionally bringing a specific memory into one's awareness.

Bladder Control

The ability to manage the timing of urination and the maintenance of continence.